Telecom Tops GenAI Adoption at 54%, Outpacing Retail and Banking By CIOTechOutlook Team

Telecom Tops GenAI Adoption at 54%, Outpacing Retail and Banking

CIOTechOutlook Team | Thursday, 10 October 2024, 05:38 IST

The telecommunications sector leads in the adoption of Generative AI, with an average of 54% of industries having fully or partially implemented the technology. The retailers are telcos (66%) and banking and insurance companies (60%). According to a study involving senior decision-makers around the world, the telecom industry is leading the way in adopting generative AI (GenAI).

The study, funded by SAS and carried out earlier this year by Coleman Parkes Research, interviewed 1,600 decision-makers in charge of GenAI strategy and data analytics. The goal was to evaluate primary areas for investment and the obstacles organizations encounter when implementing GenAI technology.

Respondents were questioned regarding their existing GenAI implementation strategies, the alignment of the technology with their strategic goals, and the challenges they face.

The study showed that a surprising 70% of telecommunications companies have already incorporated GenAI, with a lot of them either fully deploying or experimenting with the technology in various departments like marketing, sales, and IT. Additionally, 29% of these firms are in the process of implementing or are considering implementing GenAI across their entire organization.

Telcos show a higher preference for open source large language models (LLMs) compared to other industries, with 38% of organizations using them, in contrast to the average of 29% in other sectors. When it comes to future investments, telecommunications companies are once again ahead. 89% of individuals intend to invest in GenAI within the upcoming financial year, mirroring the statistic within the insurance sector.

Nevertheless, the telecommunications sector has its own worries. Concerns about data privacy (83%) and data security (80%) are the highest, with ethical implications (60%) and a lack of in-house talent and skills (54%) also being major worries.